HarperCollins in Early Merger Talks with Simon & Schuster

The Wall Street Journal reports, “News Corp. (@NWScorp), owner of HarperCollinsPublishers (@HarperCollins), has expressed interest to CBS Corporation about acquiring its Simon & Schuster (@simonschuster) book business, according to people familiar with the talks....They caution that a deal isn’t imminent.”

For book publishing, an industry dominated by a half-dozen big companies, consolidation is viewed in part as a way to weather the transition to digital media. Combining forces can allow publishers to gain more heft in negotiating terms with retailers, including Amazon.com Inc., industry executives say.

A combination of HarperCollins and Simon & Schuster could create the second-largest publisher in the US market. Random House and Penguin have a combined 28% to 30% of the market, while HarperCollins and Simon & Schuster together account for 18% to 20% of it, according to Albert N. Greco Institute for Publishing Research Inc.

Read this in full.

In the following video (recorded Nov. 8), CBS President and CEO Leslie Moonves discussed whether there was a price tag on Simon & Schuster:

Also see paidContent’s coverage.

HarperCollins’ Christian publishing division consists of Thomas Nelson (@ThomasNelson) and Zondervan (@zondervan); it also has the religion imprint HarperOne (@HarperOne). Simon & Schuster’s faith-based publishing imprint is Howard Books (@Howard_Books).

See our previous blogposts, “HarperCollins Forms New Christian Publishing Division,” “HarperCollins Christian Publishing Announces New Leadership Team," and "Random House, Penguin Agree to Merge.”

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